Teleport, the logistics venture of Capital A, noted a "promising outlook" for its end-to-end logistics offering in Southeast Asia citing, in particular, a surge in e-commerce-related deliveries.
The logistics arm of Capital A — formerly Air Asia — said it has delivered a strong quarter with a 58% year-on-year revenue growth mainly attributed to investment in what it called a "freighter-like" network, and a continued focus on e-commerce delivery.
With the return of travel and belly capacity in passenger planes in Southeast Asia, Teleport noted that it is ready to further accelerate operating its logistics infrastructure in Southeast Asia.
"The re-opening of international borders along with the return of passenger flights will allow us to demonstrate fully our operating model at scale. This is already evident in the increase of revenue via belly capacity as well as our delivery volumes growing by 60% quarter-on-quarter, which allowed us to reach profitability in cross-border delivery in March," said Pete Chareonwongsak, chief executive officer of Teleport.
"With the fast shifting delivery expectations centred around speed and experience – we are determined to continuously push ourselves to be ahead of the curve with our competitive advantage in network and technology at the core. The time is right for us to now double down on our mission to connect more of Southeast Asia, and to do it faster than anyone else," he added.
In the last year, Teleport noted that it has grown its revenue to RM147 million (US$33.54 million) by 58% YoY, mainly attributed to investment in a freighter-like network, and a continued focus on e-commerce delivery.
Teleport also increased tonnage by 31% from the first quarter of 2021 and cargo yields inclined from RM4.46 (US$1.02) to RM5.21 (US$1.19) per kg or up by 17%, despite the negative impact of China lockdowns.
Surge in e-commerce delivery volumes
Teleport said delivery volume rocketed 451% year-on-year and 60% quarter-on-quarter to 945k e-commerce orders in the first quarter of 2022 from key customers such as Zalora and DHL eCommerce.
It said cross-border delivery also reached profitability in March.
"Delivery is the main engine for growth with recurring revenue growth from large Delivery customers across four markets expected to materialise from June onwards," Teleport said.
In its statement, the logistics company also noted investments in talent aside from the continuous investment in expanding its network to drive growth and push its end-to-end logistics offering.
Teleport said it added two new independent members to its Board of Directors which will now be comprised of eight directors, three of whom are independent.
Teleport’s new independent non-executive directors are Augustus Ralph Marshall, independent non-executive chairman; and Olivier Petra, independent non-executive director.